Just in time inventory management system - meaning.

Four (4) factors that contribute to depreciation of fixed asset.

Depreciation is the allocation of the Depreciable amount of an asset over its estimated useful life. This allocated amount is charged against the income statement/Profit and Loss Account.
factors contributing to depreciation on non current assetusing scatter graph technique

Factors that contribute to depreciation of a Fixed asset are:                                                                           

  • Physical deterioration/Expected physical wear and tear.
  • Obsolescence/Economic factors. 
  • Depletion (Natural resources such as mines)
  • Legal limit/Time factor.